The U.S. 8th Circuit Court of Appeals has ruled that local governments can suspend the business licenses of businesses that hire illegal aliens. The case stems from a local ordinance in Valley Park, Mo. where a law was passed that requires local businesses to use E-Verify.

Valley Park passed the ordinance back in 2006, which punishes businesses that knowingly hire illegal aliens and requires landlords to rent only to legal residents. The second part of the ordinance was thrown out, and a county judged ruled the first part of the ordinance as unconstitutional. But, after the case made its way into the federal court system where a federal judge in 2008 ruled in favor of Valley Park. The U.S. 8th Circuit Court of Appeals reaffirmed that decision.

Since the Valley Park ordinance became an issue, Missouri has now passed a bill requiring all public employers to use E-Verify. See our map showing a full list of states that require the mandatory use of E-Verify.